After the recently implemented Goods and Service Tax Bill (GST), Toyota Kirloskar Motors has now announced a massive price drop across its model range in India. Toyota’s largest selling product, the premium MPV Innova Crysta has now become cheaper by INR 98,500 while it’s second largest selling product the Fortuner SUV sees a whooping INR 2.17 lakh price drop. These are due to the fact that large SUVs, which are above 4-meters in length and are equipped with large engines are now to warrant 43 percent tax under the new GST scheme, which is significantly lower than pre-GST rates. This will have a direct impact on the sales of these vehicles, which are set to increase even further. Also Read: GST effect on cars: Hybrid cars like BMW i8, Toyota Camry & Honda Accord to get costlier by upto INR 45 lakh
Not only this, sedans which are over 4-meters in length and get larger capacity engines, just like the Toyota Corolla Altis are also to get cheaper. The sedan’s prices are now to go down by approximate INR 92,500. Toyota c-segment sedan, the Etios Platinum will too see a price drop, of about INR 24,500 while the small hatchback, the Etios Liva is to get a price drop of about INR 10,500. These rates will differ from state to state. Also Read: GST effect on car prices in India; luxury car prices to go down, small cars & Hybrid to become costlier
As all the other segments witness a price drop, the one which needed the most, the one of Hybrid cars remained distant from GST benefits. Hybrid car’s rates are now to increase; cars like the Camry Hybrid and the Prius Hybrid are set to get expensive by INR 3.5 lakh and INR 5.2 lakh respectively. This could lead to a major set-back for the faster adoption of Hybrid cars in India. Also Read: GST effect on cars & MPVs: Maruti Suzuki Ertiga, Ciaz SHVS hybrids to become expensive by INR 1.5 lakh
The GST effect on car prices is such that all the segments, except for that of the Hybrid attracts major to minor price drops. In the coming days, this could result in increase in the sales of vehicles falling in the segments which have witnessed a price drop.
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